HR Analytics

Group Submission

By -

NAME ROLL NUMBER

Yash Gupta 2023PGP133
Shreya Gupta 2023PGP247
Shrey Rana 2023PGP119
Snehal Prabhu 2023PGP186
Simran Desai 2023PGP121
Parth Chowdhery 2023PGP167
 Part-1: Summary of Pre-reads

Evidence-based review of HRA

This paper aims to provide a complete and comprehensive evidence-based overview of
what is Human Resource Analytics and takes into consideration many studies, critically
evaluating each of them based onon the basis of definition, outcomes and hypothesis. It
was noted that most studies didn’t provide any quantitative framework, and although
there was evidence of HRA having its benefits, the low adoption rate can be attributed to
lack of good-quality data

Is your company ready for HRA

With big data and analytics being ever-present in today's business world, it is critical to
ascertain the level to which it can be used in Human Resources. This paper mentions four
key lessons from industry insight and research, namely: 1. Modelling and managing
employee dynamics 2. Big data and analytics not being a magic wand 3. Analytical HR
models should provide business insights 4. Importance of back testing the models.

Six Thinking Hat approach in HRA

The basic idea in this paper is the use of the Six thinking Hat approach which was
developed by Edward de Bono, in the field of Human Resource Analytics as it can help
with creation of more robust models and bridging the gap in the HRA development
process for an organization. A parallel thinking approach, as suggested in this text, will
help in looking at the HRA function from multiple angels and providing a more complete
model.

Strategic Readiness of Intangible Assets

There is already a significant debate about the value of Intangible assets and what
qualifies as such, this paper takes a deep dive and talks about the strategic readiness of
these assets. The basic idea is to try and understand how well these assets align with the
organization's strategy. A tool called the “Strategy Map” is used to evaluate strategic
readiness, emphasising its importance.

Challenges and Opportunities for the future of Human Resource Management

Like challenges and opportunities arrive in each field with changing times, this paper
focuses on the same during this time of disruption in the field of Human Resource
management. Factors influencing change across the face of the earth such as a
movement towards knowledge, the discarding of old practices and the differing demands
it places on organizations is mentioned. Additionally, more traditional challenges such
as Globalization, growth in age, ethnic and gender diversity cannot be understated.
Finally, the future belongs to those who are able to move with the new technology, and
the field of Human resources is no different.

What’s next for HR?

This doc focuses on the overall journey of HR, from its inception in the start of 20th
century, to its transformation in the 1980s as a core business function. This is majorly
done by characterizing HR into waves, going from a Administrative wave to a Strategic
Wave. This evolution then moves to the future of HR, characterized by the
“inside/outside” approach and a deep dive in getting from the present to the future.

Learning From Practice

The reading on Learning from Practice looks into how HR Analytics can avoid being a
management fad by incorporating HR Analytics into business. This reading covered two
cases from Maersk Drill to showcase how HR Analytics can help us optimize leadership
quality and crew competence to improve safety and performance and how HR Analytics
can help take informed strategic talent decisions leading to the expansion of the graduate
program of Maersk Drill. Moreover, the document highlights the importance of aligning
analytics with business needs and employing storytelling for stakeholder’s engagement.
The reading also talks about implementing simple statistics and comprehensive
strategies to enhance business impact and sustained organization growth.

HR Analytics for SHRM

The reading on HR Analytics for SHRM emphasizes mainly about how the strategic role of
HR Analytics is enhancing the organization’s performance. It takes into consideration and
puts forward the need for HR professionals to adopt integrated management models in
their day-to-day tasks in order to showcase the pivotal role they play in the success of the
organization. Additionally, the reading talks about how SHRM aligns HR practices with the
business goals of the company by using methods like predictive analytics for forecasting
and enhancing the outcomes. The reading also talks about the 21 model of HCM which
are supported by ERP systems and provides a framework for analysing organizational
data. The approach mentioned in the paper can help HR managers make informed
decisions, enhancing productivity and position HR department as a vital business
partner.
Measurement of Organizational Capital
The paper on Measurement of Organizational Capital discusses about how to create a
measurement which computes organizational capital and how this measurement can
help investors factor in intangible assets like organizational capital to remove market
inefficiencies. Moreover, the reading also mentions the measurement challenges in
creating such a model and the various approaches like RO and ISO which the authors
took to estimate organizational capital.

OPM Data Breach

The web article on OPM data breach talks about how the OPM data breach exposed the
personal details of over 20 million federal employees. Following this breach the US
government implemented cybersecurity improvements, including two-factor
authentication and enhanced monitoring. However, the vulnerabilities in the system still
remain and the affected individuals continue to deal with the repercussions like identity
theft and lawsuits. This article highlights the need for robust cybersecurity measures for
organizations since most organizations store personal information of employees these
days and use it to gain HR insights.

They are Watching You at Work

The article on They’re Watching You at Work talks about how predictive statistical
analysis and big data is being incorporated in hiring and job assessments. Moreover, the
article mentions that as digital data storage and analysis grows the datafication would
fundamentally change how society operates, and this transformation is similar to past
infrastructural revolutions.

Social Capital: Measurement and Consequences

This doc focuses on concept of social capital, it’s definition, how to measure it and the
impact it can create. It says that measuring social capital is very difficult due to its
intangibility, some of the indicators are trust, civic engagement and social networks. It
tells the importance w.r.t. social, economic development etc. It includes different cases
regarding implications of promoting it as well and the need for more research.

Human capital analytics and reporting

It talks about CIPD, which is working to enhance work and working lives for 140000
people. Also it mentions about the leadership in terms of thought, independent research,
training for HRs and L&D professionals. It elaborates o theory of Human Capital, and
defines a framework which helps in understanding the value and contributions of people
in org. Difference between Taylorist, instrumentalist and humanist approaches is
discussed, which emphasizes the importance of designing jobs which suits individuals.
It includes analysis of Human Capital not just in financial aspects, but aspects like well-
being, diversity etc.

The ball of wax we call HR analytics

This read focuses on Automating HR analytics using Machine Learning and other
advanced methods. It suggests using Regression Analysis and fine tuning bed on
performance metrics. It also emphasizes the importance of developing skills to utilize
emerging technologies. It mentions 9 important employee retention metrics revolving
around what types of employees are at risk, whether the newly hired or employees who
are working for a long time in organizations. It also emphasizes the role of predictive
analysis in preventing the loss of talent and as a futuristic trend in HR analytics.

Raging Debates in HR Analytics

This read provokes the thought process of understanding the importance of Human
Resource analytics. It tries to ask or answer the 6 questions mainly the what, where, who,
when, why and how related to HR analytics. It also talks about the evolution of HR
analytics, it’s future and discusses in details regarding the 6 questions or debates. It also
discusses the importance of analytics to help people and employees and not to prove
worth/ROI of HR.

Individual adoption of HR analytics

The aim of this document is to understand or explain how people adopt HR analytics
within organizations. It starts with the notion that HR analytics is yet to catch up with the
organizational needs. Frameworks like Rogers’ Innovation framework has been
discussed. Focus of various studies and the model they adapt like TAM, DOI, TPB have
been mentioned. It focuses on the importance and benefits of addressing individual
concerns and providing required support to enable adoption of HR analytics.

Big data and talent management

Organizations can enhance talent management by leveraging big data to make informed
decisions rather than intuitions. Three examples illustrate how data improved team
effectiveness and performance. ServiceCo: Misalignment of team characteristics led to
poor performance; data-driven reconfiguration resulted in significant revenue growth.
Initech: Transition to solution sales failed due to mismatched team capabilities;
assessment led to strategic realignment and improved results. SGB: C-suite lacked
strategic focus; structural changes fostered innovation and regained market position.

HR and Analytics - The Big Data Challenge

The article focuses on optimistic view of HR analytics as a transformative tool for HR. Its
current practices could prove detrimental for organizations and its employees. Authors
emphasize on need for better methods & collaboration between HR and analytics
professionals. We need advanced analytical techniques to leverage HR data effectively
and not rely on superficial metrics.

How Big Data Is Playing Recruiter for Specialized Workers

Big data in recruitment enables firms like Gild to use algorithms to access programming
talent based on performance metrics, and not just mere traditional qualifications. Jade
Dominguez, a self-taught programmer, was discovered by Gild and hired based on a high
programming score that was sought out by data analytics in search of talented
individuals. Experts say traditional hiring methods can often miss talent because of
biases associated with education and background. Gild's goal is to fine-tune its
algorithms so that system becomes better at evaluating the job candidates based on
more than programming.

In Head-Hunting, Big Data May Not Be Such a Big Deal

Laszlo Bock, Google’s Senior Vice President of People Operations, states the role of Big
Data in leadership and management, and also mentions its limitations. He states that
interview scores and job performance has no correlation, while encourages structured
behavioural interview over traditional brainteasers. Also, effective leadership depends on
consistency & fairness rather than academics, as GPAs are poor as job performance
predictors. Big data shall influence leadership practices but should be applied with
human insights for true effectiveness.

HR Metrics and Analytics: Use and Impact

HR functions mostly lack data on business impact of the programs. Organizations should
collect 3 metrics: efficiency, effectiveness and impact. Current metrics focus on
efficiency but has limited effectiveness and impact measures. Better metrics & analytics
must be made to influence business strategy and improve its strategic role.
HR Metrics and Analytics – Uses and Impacts
The paper studies utilization of metrics & analytics in HR. It highlights the need for
improved metrics & analytics to enhance strategic role of HR in organization especially
for data backed business decisions. It states the need for HR to improve analytical
capabilities and create better metrics for right analysis, to visualize the link between HR
practices & business performance.

HR Metrics and Organizational Financial Performance

This paper in essence is a descriptive research about the various HR metrics employed
and its correlation with the financial performance of the firm in question. There is clear
desire from the top management to see the impact of HR metrics and its synergy with the
financial performance of the firm. There is also a significant dialogue about the exact
objectives of the firm and the need to ascertain that with clarity before looking for any
correlation.

Data Visualisation: HRs impact and Influence

Data Visualization is not a new term, and a need to visually see the data in representative
form has always helped with understanding what the data is speaking. This has now gone
to the next level due to availability of big data, the need for data driven decision making
and information transparency. Data visualisation helps with business applications,
however it is critical we choose the right data that can drive decisions to visualise with
the right format. The principles of Freytags pyramid can also be used for building a story
using this visualised data.

Latent Profile Analysis

The central idea behind a latent profile analysis is to capture latent subpopulations in the
given data , based on a certain set of variables to derive actionable insights. One key
assumption is that LPA assumes population heterogeneity. The real value of LPA is
completely dependent selection the right question. There is some mention of research
design challenges and how to overcome the same.

Talent Analytics
The central theme of this paper is how companies such as Google, BestBuy etc leverage
talent analytics to gain a competitive advantage. There as many use cases of talent
analytics of how different firms take up different pathways to use talent analytics to their
advantage, both in terms of business strategy and returns.
Talent Analytics- Trends and Practices
This paper takes a deep-dive into the trends in Human Resource Analytics and their
progression, from basic reporting of metrics to organizational research and the need for
key actionable metrics to drive strategy and decision-making. The paper also talks about
the types of software’s used and how Large Language Models(LLMs) and AI, while still
being in a nascent phase in Talent Analytics will drive the future of this field.

One Downside of an Up Economy:

This article talks about how, as the economy strengthens and job opportunity increases,
employee turnover becomes an issue for HR professionals across industries. Key points
like employee disposability, where many feels they are easily replaceable regardless of
tenure, and little done by employers to mitigate this. Another is retention challenges,
which increase as the economy improves. The shift in work culture, influenced by the
Internet and sites like LinkedIn, makes it easier for employees to find potential
employers. Another is where companies are opting for different strategies to retain
employees. Examples of Essner Amper, an accounting firm implemented various
strategies offering real-time feedback, flexible work schedules and perks like a drink cart
on Friday, etc.

HC Metrics
This provides an extensive list of matrices that can be used to measure various HRM
processes within organization. These matrices under different HR processes such as
recruitment and selection, learning and development, remuneration, employment
retention, etc. These categories include specific matrices designed to assess both the
efficiency and effectiveness of HR initiatives, which are helping the organization to make
data-driven decisions to optimize the workforce and enhance overall performance.

Regression with SPSS

This document details the step-by-step process of conducting a logistic regression in
Spss using an example study where a college student’s Decision about an animal
research case is analyzed. It includes instruction on setting up data to conduct further
analysis like the Chi- Square test for categorical data.

Data May Not Be Enough To Close Gender Pay Gap

This article discusses the ongoing issue of the gender pay gap and the challenges despite
the increased efforts to collect and analyze the pay data. Companies increasingly
analyzing their pay data, but the process is complicated (i.e. data separation to avoid
discrimination and risk of misleading results). Companies like Salesforce have taken
steps to close their pay gaps, others fearing potential legal repercussions from the
disclosure of data. While transparency and accountability are crucial, they may not close
the gender pay gap. Promoting women to managerial roles and addressing cultural issues
within organizations are also essential for achieving pay equity.

The Best Industries for Benefits

The report highlights that the salary is a primary focus for job seekers, benefits like health
insurance, paid leave, and retirement plans also significantly impact job satisfaction and
retention. Reports says that finance, IT, manufacturing offer the highest rated benefits,
while food services and retail lag. The report also notes that while access to benefits is
crucial, their quality varies greatly across industries.

Part -2: Model to Value Human Capital

Human Capital refers to the value that an individual brings to an organization. It can be
a result of the skills they possess, the knowledge or experience they have acquired over
the years. Valuing this Human Capital effectively usually requires a model that keeps
into consideration various factors like Cost Associated with replacing employees, Cost
to Hire, performance metrics, top performers, age-related turnover trends. The Human
Capital Value model suggested tries to bring together these parameters and put it into a
framework suited for organizations which are aiming to align HR strategies with long-
term business objectives.

Cost Based Approach

1. Cost to replace employees: This includes costs for managing mainly 3 kinds of
positions namely Associate, Managerial and C-suite positions. For associate
positions, the costs include recruitment costs, onboarding and training costs,
and are generally lower when compared to managerial roles. Managerial or C-
suite positions have a high replacement cost due to extensive search involved,
long negotiation of salary packages, and longer onboarding times.

2. Turnover Costs: These costs are different for different age, position, with higher
costs associated with critical roles and costs for those in the age group of mid
20s to mid 30s where turnover is prevalent.
 3. Learning, Development and Training costs: These costs include investment in
skill enhancement, particularly but not limited to top performers (5-10%) who
contribute extraordinarily to the organization and its success.

Income Based Approach

1. Performance metrics by age and role: For associate positions metrics like
efficiency, customer satisfaction scores (CSAT), efficiency, productivity etc
can be considered, whereas for managerial or c-suite level positions, metrics
like Leadership effectiveness, the impact created in organization, team
performance are paramount.

For this, age-related performance trends can be analyzed like performance

peaks (Eg – mid 30s) and stabilization phase (Eg – late 30s) where people
often show sustained growth and stability.

2. Top Performers (5-10%): The revenue and impact generated by top

performers based on the average employees, which emphasizes their
contribution to overall productivity and profitability.

Market Based Approach

1. Age-related attrition: For ages 25-29 the turnover is high due to life
altering events like marriage, pregnancy particularly among females.
The costs associated with those factors and the potential loss in
productivity due to that can be considered as one of those factors.
In mid 30s for males, there is an increased likelihood of job or role
changes as they might switch jobs for family reasons like more money,
location preference etc.

2. Stability and growth in Late 30s: In late 30s employees are mainly
looking for job stability and they are considered to contribute to
sustained growth of the organization.

3. Benchmarking Costs: The costs for compensation and replacing

employees or that of top performers with critical roles, when
compared to market average can be considered while evaluating a
model in monetary terms.
Conclusion

The model proposed above offers a multi-faceted analysis in terms of bringing

costs, income and market data to provide a holistic view of Human Capital
Value. The model highlights the importance of retaining top performers and also
understanding different demographics like age to include age-specific turnover
patterns. It also aims to provide organizations a structured approach considering
different metrics to better manage and to optimize HR strategies and align them
with broader business goals for the benefit and sustained growth of the
organization.